JQ Financial Services

📊 Gifts you receive are not taxable income regardless of amount. The $19,000 annual exclusion determines whether the giver must file a gift tax return (Form 709).

Even above $19,000, no gift tax is owed until the giver exceeds the $15 million lifetime exemption. The recipient never owes income tax on a gift.

Inheritances now includes the caveat that inherited retirement accounts are taxed on withdrawal. An inherited Traditional IRA is taxable as ordinary income when distributions are taken. An inherited Roth IRA is generally tax-free if the original account met the 5-year rule.

Tips and overtime are now correctly framed as federal income tax deductions under the OBBBA, not full exclusions. The income is still reported, still subject to Social Security and Medicare payroll taxes, and still potentially subject to state income tax. The deduction applies to federal income tax only, for 2025 through 2028.

Social Security was the most-asked-about omission across all three versions of this post. It is not on the list because it is not fully tax-free. Up to 85% of Social Security benefits can be taxed depending on combined income. Taxation begins at $25,000 combined income for single filers and $32,000 for married filing jointly.

The 0% long-term capital gains rate applies based on taxable income, not gross income. The 2026 standard deduction ($16,100 single / $32,200 MFJ) reduces your AGI before the threshold is applied.

VA disability benefits have been excluded from federal income tax for decades. The prior version incorrectly labeled this as new.

Tax Season Is Here!

We are pleased to announce that Tax Season officially begins on Monday, January 26, 2026.

✅ We continue to offer remote tax preparation services.
Simply email your tax documents to [email protected], and our team will respond within 24 hours.

🎉 Special Tax Season Promotion

The first five clients who purchase permanent life insurance with us during tax season will receive TAX PREPARATION COMPLETELY FREE.
Protect your family and pay nothing for tax preparation!

💰 Referral Bonus

We love referrals! Receive $50 for every personal referral you send our way.

📞 Contact us today to schedule your tax preparation or learn more about our services!